Corporate Citizenship Report - Amway

Helping people realize their potential. 2013 GLOBAL CORPORATE RESPONSIBILITY REPORT

WE BELIEVE

Inspiring POTENTIAL IN OTHERS

Dear Friends, The Amway™ business is a people business. Since 1959, our focus has been on helping people reach their potential. Through our corporate social responsibility efforts, business opportunity, brands and products, our goal has been to help improve the lives of others. An important part of this is serving those in need. Last year, we celebrated 10 years of the Amway One by One® Campaign for Children where we helped 10 million children around the world. The year culminated in Amway’s first-ever Universal Children’s Day on November 20 where 15,000 volunteers helped 100,000 children in 57 countries. The success of these events are the result of the generosity and dedication of our distributors and employees that give of their time, talent and treasure. Because of them, they’ve impacted the lives of children in ways that make us very proud. Helping people reach their potential is another way we work to improve lives. Entrepreneurs around the world look to the Amway business opportunity as a way to realize success and change their lives. The spirit of entrepreneurship is alive and well around the world. This means there’s a lot of potential for us to improve even more lives and there is plenty of opportunity to find more and better ways to inspire and motivate others to understand they have what it takes to become entrepreneurs. Indeed, we accomplished a lot last year. Knowing we are making a difference in people’s lives gives us a tremendous sense of fulfillment. But the need to help others remains great. In the years to come, we’ll continue to partner with our dedicated distributors and employees to help people around the world. Doing so helps fulfill our vision of improving lives and makes this world a little better for us and the generations to follow. Sincerely,

Steve Van Andel Chairman

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Doug DeVos President

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We BELIEVE Corporate social responsibility is a vital part of our company. It’s integrated into everything we make, and everything we do. Indeed, it even helps define who we are. At Amway, our business exists to enable people to unleash their potential. We do that by helping them start their own businesses. And we do it through best-in-class products, and brands that help people to become healthier, more confident, and create better homes. In the process, we’re committed to extending our people, passion and expertise to improve communities around the world. The most visible reflection of that commitment last year was through our Amway One by One® Campaign that benefits children all over the world. In 10 years, we’ve made a difference in the lives of 11 million children.

SHARED VALUE

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In the process, we never lose sight of the need to operate and grow the Amway™ business more ethically and efficiently. From product and process enhancements to charitable and humanitarian efforts, we integrate our sustainability goals into all that we do.

AMWAY WAS BORN OUT OF THE BELIEF THAT, BY HELPING PEOPLE LIVE BETTER LIVES, THEY COULD MAKE THE WORLD A BETTER PLACE. More than a half-century later, in more than 100 countries and territories, we’re still emulating the powerful example set by our founders.

But our role extends far beyond that initiative to embrace men and women at risk as well. Amway recognizes that there are substantial opportunities to innovate and grow as a company by creating global solutions to some of the planet’s most challenging issues.

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Into The Heart OF AMWAY

Words That MATTER

Amway is a values-based business fueled by the power of relationships. Since our inception in 1959 by co-founders Rich DeVos and Jay Van Andel, we’ve become a global leader in the fields of nutrition, beauty and home.

One of the first things visitors to Amway’s World Headquarters in Ada, Michigan observe are the words “Freedom,” “Family,” “Hope” and “Reward” etched in stone at the front entrance. Much like the permanence that stone represents, we are proud to emulate our business through these values each and every day, as our founders intended.

We tie our success largely to the more than 3 million Amway Business Owners and 21,000 employees worldwide who are committed to helping people live better lives by helping them realize their potential. We are proud to be a global company with a presence in more than 100 countries and territories around the world. Last year, we reported $11.8 billion in global sales through world class brands of Nutrilite®, Artistry®, eSpring®, with our 450 unique, high-quality products distributed exclusively by Amway Business Owners. Amway headquarters are based in Ada, Michigan on the same plot of land our founders bought more than 50 years ago.

WE ARE THE NO. 1 DIRECT SELLING BUSINESS IN THE WORLD, AND RANKED NO. 28 ON THE FORBES MAGAZINE 2013 LIST OF “AMERICA’S LARGEST PRIVATE COMPANIES.” ** Amway embraces the resources of its Amway Business Owners and employees around the world to create a difference in the lives of children through the Amway One by One® Campaign for Children. In 10 years of service to this initiative, some 11 million children have benefited from opportunities tied to education, nutrition, recreation and more.

Our founding families still lead Amway today. Steve Van Andel serves as our chairman and Doug DeVos as president. Both continue their fathers’ legacies of active leadership, and are prominent members of key business and industry organizations.

Those four words represent our Founder’s Fundamentals and they haven’t changed in more than 50 years of seeking more and better ways to serve others. We continue to build on these original principles. And more than that, we connect with other people to lift them up.

FOUNDERS’ FUNDAMENTALS:

AMWAY VALUES:

FREEDOM – Personal opportunity and economic opportunity go hand in hand. With Amway you have the freedom to change your life by owning your own business.

INTEGRITY – Integrity is essential to our business success. We do what is right, not just whatever “works.” The success of Amway is measured not only in economic terms, but by the respect, trust and credibility we earn.

FAMILY – We all need family to cheer us on. We are all members of the global Amway family – we respect and take care of each other to foster success. HOPE – Inspiring you to dream bigger. Amway creates an environment where hope can thrive. REWARD – Happiness is best achieved through earned success. Amway rewards what you achieve and also what you help others achieve.

**Source: 2013 Direct Selling News Global 100 List

PERSONAL WORTH – We also acknowledge the uniqueness created in each individual. Every person is worthy of respect, and deserves fair treatment and the opportunity to succeed to the fullest extent of his or her potential. ACHIEVEMENT – We are builders and encouragers. We strive for excellence in all we do. Our focus is on continuous improvement, progress and achievement of individual and group goals. We anticipate change, respond swiftly to it, take action to get the job done, and gain from our experiences. We encourage creativity and innovation. PERSONAL RESPONSIBILITY – Each individual is responsible and accountable for achieving personal goals, as well as giving 100 percent effort in helping achieve corporate or team goals. By helping people help themselves, we further the potential for individual and shared success. We also have a responsibility to be good citizens in the communities where we live and work. FREE ENTERPRISE – We are proud advocates of freedom and free enterprise. Human economic advancement is clearly proven to be best achieved in a free-market economy.

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‘OPTIMAL YOU’ Is An Investment In Health, Productivity

Employee – Greg Klein Sr. IT Business Systems Analyst

At Amway we are doing our part, by maintaining an environment that offers a holistic approach to educating and influencing health and well-being.

To A Job WELL DONE Our most valuable assets are our people, period. Everyone is a respected member of the team, and by believing in potential – we help inspire achievement in everyone. That’s why we have programs and policies in place to enhance lives and safeguard futures. We invest in our employees in significant ways so that they’ll succeed and grow not only in their careers, but as valuable citizens of the communities in which we live, and work.

REWARDS & BENEFITS:

VALUING DIVERSITY & INCLUSION:

At Amway, we reward our employees with targeted developmental plans, global career opportunities, performance-based pay, comprehensive benefits and more. At our World Headquarters in West Michigan, employees enjoy access to an employee store, wellness programs -- and an on-site state-of-the-art fitness center featuring innovative programs and events created just for them and their families.

It’s a big world out there, and we recognize it by working hard to become increasingly inclusive. We are committed to recruiting, developing, retaining, and promoting talent to continue to drive the success of our company. We realize that creating an inclusive workplace is key to sustaining high levels of employee engagement. This is vital to a productive workforce and having employees contribute innovative ideas. Based on this we are committed to engaging people who represent a wide cross-section of generations, gender, tenure, cultural, race and ethnic groups and who bring diversity of thought to Amway on a daily basis.

A SAFE WORKPLACE: Amway puts a high value on safety, viewing it as a collaborative effort between staff and management. We evaluate our safety protocols on a regular basis, and boast total injury accident rates of 30 percent less than the industry average.

GLOBAL TALENT DEVELOPMENT We keep our eye on the prize: personal and professional best. We pride ourselves on giving our employees the power and knowledge to advance their careers. Our employee-focused culture drives education and training, always tailored to individual growth and development.

We continually assess the physical and emotional needs of our workforce. Annually, we modify, enhance and/or increase employee access to unique wellness education, programs and resources that ultimately assist them in taking more control over their health. In many of our offices, we offer a 60-question health screening and 45-panel blood screening – both more comprehensive than most doctor requirements – along with health coaching and other tools that help sustain long-term lifestyle changes that can improve quality of life and daily productivity at both work and home.

Employee – Kelly Klemish Customer Care Associate II

OPTIMAL YOU PROGRAM STATS • Since 2012, more than

75% of our high

risk health population have either successfully reduced their total risk levels or have avoided increased health risks. • More than

65% of our U.S. workforce have

participated in a private consultation with a registered nurse regarding their results and to learn how to live a healthier lifestyle. • For two consecutive years, greater than

90%

of participants in the Optimal You incentive program been successful in receiving a health premium reduction for their commitment to living a healthier lifestyle.

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Just 46 years old, Greg Klein thought he was in good health – until his health screening results showed something curious. A moderately high Prostate Specific Antigen or PSA count. Further follow up confirmed an aggressive cancer and that surgery was the obvious approach. The surgery was successful and two years later, Greg remains cancer free. “I want to be an involved husband and father and my boys are in their early teens.” says Greg. And he continues to be an advocate for Optimal You.

Three years ago, Kelly Klemish asked her husband John to do her a small favor: get an Optimal You health assessment. He did, and “most of his results were in the red risk area, so I made a doctor’s appointment immediately,” said Kelly. That visit changed their lives forever. John was diagnosed with Hairy Cell Leukemia, a rare, slow-growing form of blood and bone marrow cancer. “We felt numb,” remembers Kelly. The doctors said if they had waited another 24 hrs., John would not have made it. John started chemotherapy the next day with many subsequent tests, treatments and rough side effects that continue to impact his daily life. But, today John is in remission. “He’s alive and we owe it to the health assessment,” said Kelly.

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PEOPLE

Healthy Bodies Nourish Healthy Minds: FEEDING CHINA’S MIGRANT SCHOOL CHILDREN Throughout China, roughly 61 million children living in rural areas don’t have regular access to nutritious meals. Many parents grapple with the task of moving to the city to find stable work, leaving their children behind with grandparents or extended relatives in their home villages. The walk to and from school often takes hours to complete. Because of this, many children stay at the school for a week or more, in facilities that were not designed to be boarding schools, often lacking kitchens and food preparation areas. Our aim is to change that, one school at a time. Over the last several years Amway Charity Foundation (ACF) in partnership with the Chinese government, has built 1,700 “Spring Sprouts Kitchens” to provide balanced meals to hundreds of thousands of students in Grades 1-9 across more than a dozen provinces and regions. Food stipends from the government help supply fresh beef, vegetables, and dairy, while the Amway Charity Foundation helps build the kitchens necessary to prepare these nourishing meals. The effort is a testament to public-private partnership, leveraging six dollars of government funding for every dollar privately invested. The ACF and its platform of partners not only finance the project, but also contribute the power of national logistics and administrative and procurement know-how.

There are tens of millions of children still in need, and Amway is proud to bring the issue to a global audience at the Clinton Global Initiative, which has helped elevate the issue of malnutrition to the forefront of international discussion. ACF has made a CGI Commitment to Action to bring 2,000 additional Spring Sprouts Kitchens to rural schools by 2015, ensuring that an additional 1 million Chinese children have access to nutritional lunches. Each kitchen feeds roughly 500 children, employs at least 10 trained, full-time staff, and sources local food as a customer to about 15 area farms. This widespread effort to combat malnutrition has rendered impressive results so far, as measured by testing of students that tracks physical, psychological and intellectual markers. Through ongoing collaborative efforts that also include Amway Business Owners and employees across China, the dream is to bring additional Spring Sprouts Kitchens to rural Chinese schools, providing even more children a chance to reach their potential.

Our Passion is for OUR PEOPLE Millions of people across the globe comprise our Amway family, and we welcome the opportunity to help each and every one of them lead better lives.

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While our products and services help achieve that goal, it’s also what’s in our hearts that creates differences for people in every corner of the world. By mobilizing others to do good work in their communities, we help people help themselves

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The Amway One by One Campaign – MAKING A GLOBAL IMPACT On a single day last autumn, the world reverberated with the rhythms of Amway celebrating a dynamic milestone -- the 10th anniversary of the Amway One by One® Campaign for Children. From the Americas to Asia and beyond, some 15,000 volunteers in 57 countries stood shoulder-to-shoulder, joining in on a mosaic of 300 projects that transformed November 20 into a day that will reign historic for an initiative that had its humble launch in 2003. Since then, Amway employees and distributors have helped more than 11 million children by volunteering a combined 3.1 million hours to raise $225 million for thousands of projects worldwide. The November 2013 day of volunteering, which was nine months in the planning, began at sunrise in Australia and New Zealand, and didn’t wind down until dark descended on the final time zone involved, along the west coast of the U.S. It was a global demonstration of our current and ongoing commitment to the communities in which we live and work. In Malaysia, a collaborative effort produced brightly painted ceramics which were later sold to raise funds for those affected by Typhoon Haiyan. Amway Thailand teamed up with others to provide 22,000 warm jackets for children. In Singapore, 30 Amway Business Owners and employees hosted a fun-filled day for children of all ages at a gardening hub. And at Amway headquarters in West Michigan, more than 90 percent of the company’s 4,000 employees helped build 1,400 bicycles and 10,000 hygiene kits. And so it went, in every corner of the world, putting our name on projects that challenge the status quo.

ON NOVEMBER 20, 2013,

here’s a snapshot of how Amway Business Owners and employees joined hands with others all around the world to help kids:

1 00,000 children impacted

57countries

involved

1 5,000 volunteers

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AMWAY WORLD HEADQUARTERS Taking over a warehouse to assemble bikes, prepare emergency kits and more. #amwayonebyone

EUROPE, AFRICA Assembling care packages for struggling families. #amwayonebyone

300

projects

SINCE 2003,

The Amway One by One Campaign has produced the following:

1 1 million children impacted

GUATEMALA, HONDURAS,

3.1 million

volunteer hours donated

$225 million

in contributions received

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GUATEMALA, HONDURAS, PANAMA, VENEZUELA Helping out at local orphanages. #amwayonebyone

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12101 likes

CHINA Teaching orphans about safety and disaster preparedness. #amwayonebyone

9217 likes

AUSTRALIA, NEW ZEALAND Helping children with heart disease. #amwayonebyone

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Founders Council Members EAGER TO MOTIVATE TUTUDESKS: A BETTER WAY TO LEARN In many parts of the world, students hungry for knowledge are forced to go without one of the most basic elements required for learning – a desk. That’s changing, thanks in part to Amway Founders Council members like Anja Schwarz, who travels far and wide to provide portable “Tutudesks,” named in honor of Archbishop Desmond Tutu of South Africa. Through partnerships with Amway and others, the Schwarz family has helped distributed more than 2 million Tutudesks throughout Africa, with plans to deliver 20 million by 2020.

REACHING OUT TO CHILDREN WITH SPECIAL NEEDS

IN RUSSIA, SEEING CHILDREN THROUGH A DIFFERENT LENS

For more than 30 years, Amway has teamed with Amway Founders Council members affiliated with the Britt family to reach out to children with special needs.

Late last year, Amway Russia announced a ground-breaking initiative involving a wide web of programs and services, all dedicated to raising up the welfare of children and families.

Nothing less than miracles take place, thanks to a longtime collaboration with Easter Seals, whereby the Britts and others generously integrate giving and service into their lifestyle, and encourage others throughout North America to join in the effort.

Named the “Responsible for the Future” fund, it’s an exciting opportunity for Amway to partner with Russian academics, celebrities and non-profit leaders to foster values that drive responsible parenting and lead to increased self-esteem among children in that country.

Because of the dedication and support provided by Amway leaders and others, Easter Seals can offer more and better lifechanging services to children and their parents, and pledge to be in their corner for generations to follow.

“It should become a trend to be friends with your children, interact with them and be their partners,” Tutta Larsen, a wellknown Russian radio and TV personality, said at the October 2013 launch. “You should respect the personality of your children.”

Reaching Across The Seas TO OUR BROTHERS AND SISTERS IN NEED When disasters strike – no matter what part of our world -- Amway responds.

Locally, staff prepared 1,000 relief kits with Amway™ products destined for those who were affected by the typhoon, including some who had to abandon their hometowns for new places to live.

Late last September, more than two dozen of our own Amway Business Owners were personally affected by the wrath of Tropical Storm “Ingrid,” which slammed into Mexico’s Gulf and Pacific coasts and caused upwards of three dozen deaths.

Around the world, ABOs galvanized efforts in all four of our global regions – Asia Pacific, Greater China, Europe and the Americas – in a collective show of support for our friends and colleagues and the human race.

Six of our ABOs lost their homes during the crisis that transplanted more than 28,000 people, shut down highways and damaged critical bridges.

Meanwhile, Amway China continues to help oversee relief efforts in the wake of the 7.0 Ya’an Earthquake there last April that killed nearly 200 and injured some 12,000.

Amway Mexico reacted with generosity, leading an effort to partner with One by One partner Habitat for Humanity to help rebuild homes and lives affected by this catastrophe. Just two months later, Amway responded with a complex effort to assist people affected by Typhoon Haiyan in the Philippines, where Amway has approximately 120 employees and 65,000 Amway Business Owners. Response in the Philippines began at multiple levels, with Amway senior executives at our Ada headquarters immediately authorizing funds to support rescue and recovery efforts through the Red Cross.

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AMWAY CHINA STEPPED UP TO DONATE 5 MILLION RMB ($800,000 USD) THROUGH THE AMWAY CHARITY FOUNDATION. No matter what part of the planet endures a natural or man-made disaster, Amway has a long history of pledging to do its part on behalf of people in need. Reaching out is always a somber reminder that our sympathies are never measured by the size of the market, but by the impact on humanity.

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PRODUCTS Products That Help PEOPLE GROW Corporate Social Responsibility is integrated into every one of the thousands of products we produce and provide globally. Whether we’re developing innovative ways to enhance nutrition, or designing new solutions for bringing fresh water to a thirsty planet, you can count on Amway to deliver strategies that are motivated by conscience. For more than 50 years, our company and its leaders and employees and business owners have worked together to bring you the finest in health, beauty and home products. We remain committed to that pledge, leveraging our expertise to create hybrid solutions to some of the world’s greatest issues

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NUTRILITE® LITTLE BITS™ – THE FIGHT AGAINST GLOBAL MALNUTRITION Every year, 7 million children around the globe under the age of 5 die from preventable causes, according to the World Health Organization.

AND WE KNOW THAT LITTLE BITS DELIVERS A BIG BENEFIT.

Malnutrition is the underlying cause of nearly 45% those deaths.

Since 2008, Nutrilite Little Bits has been providing important health benefits to nearly 3,000 children in Mexico and Zambia.

Amway finds that inexcusable. That’s why we’ve created help for malnourished in the form of tiny packets that pack a nutritious punch – Nutrilite® Little Bits.™ Developed by Amway scientists, Nutrilite Little Bits is designed to be added to any native food. When ingested, Nutrilite Little Bits can improve a child’s health thanks to the 15 essential micronutrients contained in every serving. Nutrilite Little Bits includes one of nature’s most concentrated sources of natural vitamin C -acerola cherries, which are grown and harvested on certified organic farms that are owned and operated by Amway. To help Nutrilite Little Bits find its way to those who need it most, Amway has launched a global effort, the Nutrilite Power of 5 Campaign. The program is focused on solving issues faced by children who do not receive the necessary nutrition in their first 5 years of life. Our global partner is CARE, a leading humanitarian organization fighting poverty in every corner of the world. Together – and with allies that include Nutrilite, Non-Governmental Organizations, parents, children and Amway Business Owners – we’re bringing nutrition to malnourished children so they can celebrate those significant 5th birthdays.

A clinical study in Mexico cited major improvements in the health status of children given Nutrilite Little Bits along with a nutrition care package to provide them with access to quality food. By the end of the study, many of the children who had experienced iron deficiency showed marked gains. There also were improvements in weight, and fewer signs of stunting. The children’s caregivers also reported that throughout the study, the children were increasingly more active, communicative, and engaged in learning. As the Nutrilite Power of 5 Campaign continues to gain momentum, a total of 17 countries representing four continents will be included in the distribution program by 2016. At Amway, we consider it not only our responsibility to assist children in need, but a privilege. It’s one more way that our company, our people and our partner organizations are harnessing the power of partnerships and helping people lead more full and meaningful lives.

$10 USD

$20 USD

$60 USD

will provide Nutrilite Little Bits to



child

child

child

1 month

2 months

6 months

$120 USD

$240 USD

$500 USD

for

for

for




child

children

children

1 year

1 year

1 year

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Thanks to a powerful partnership between Nutrilite, and humanitarian organizations, like CARE, Nutrilite® Little Bits is helping children in Mexico and Zambia reach age 5 and thrive. Within the next 3 years, more children in more countries will experience these life-changing benefits. But only with your support.

Additional information about Nutrilite Little Bits, and how you can get involved, is available at: Nutrilite.com/littlebits 15

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Providing WAVES OF HOPE

Elevating ENTREPRENEURSHIP

Most schoolchildren can tell you that nearly 75 percent of the earth’s surface is comprised of water.

Amway champions entrepreneurs in every corner of the world.

But a far more sobering fact – and not nearly as well known – is that 780 million people worldwide lack access to clean water – a figure that represents more than 2.5 times the population of the U.S.*

Even in the most challenging of economies, the Amway™ Business Opportunity has the power to change lives, providing men and women the opportunity to help others, and at the same time, provide them the opportunity to earn additional income.

Worldwide, 1 in 9 people lack access to an improved water source. In fact, more people on the planet Earth have a mobile phone than a toilet. At Amway, we’re working diligently to not take water for granted. Since 1984, we innovated drinking water treatment technology with the first generation of our eSpring™ water filter. Six years later, we integrated ultraviolet disinfection to destroy more than 99.99 percent of the bacteria and viruses commonly found in potable water. Finally, we debuted the new eSpring™ system, which today remains the world’s largest-selling brand of kitchen water treatment systems.**

THE NEED FOR CLEAN WATER: More than 3.4 million people die each year from water, sanitation and hygiene-related causes. Nearly all deaths – 99 percent – occur in the developing world. Lack of access to clean water and sanitation kills children at a rate equivalent to that of a jumbo jet crashing every four hours.

Leveraging our expertise in water filtration technology in rural and peri-urban communities – especially those suffering from post-disaster water crises, has become our passion.

Of the 60 million people added to the world’s towns and cities yearly, most move to informal settlements (i.e. slums) with no sanitation facilities.

We’ve expanded our humanitarian efforts into developing countries like Ghana, Haiti and the Dominican Republic. And future efforts will focus on bringing our expertise to children in under-served schools

The water and sanitation crisis claims more lives through disease than any war claims through guns.

We’ve not lost sight of how much more there is to do, either – for the most important data of all is that water makes up nearly 60 percent of our bodies, and we can’t go for more than a few days without it.

An American taking a 5-minute shower uses more water than the average person in a developing country’s slum uses during an entire day

It’s in that spirit that we support a global culture of entrepreneurship, and demonstrate it by regularly conducting research into what makes. The Amway Global Entrepreneurship Report tells us how people view entrepreneurship; what inspires them and prevents them from starting a business of their own. We use the data to fuel broader discussions to improve the landscape for entrepreneurs everywhere. Annually, we publish an entrepreneurship report that culls data from more than 26,000 respondents representing two dozen countries.

What we’ve discovered repeatedly is that independence and income are key drivers of entrepreneurial intent. But we’ve also learned that “fear of failure” too often stands between would-be entrepreneurs and their dreams. That translates into work for us to do, emboldening us in new ways to connect people with their desire to do more themselves and for others. Indeed, the spirit of entrepreneurship is alive and well, and just as it has for more than 50 years, Amway remains committed to partnering with people all over the globe who have the desire and willpower to make profound changes not only in their own lives, but in the lives of others.

*According to the website water.org **Based on a Verify Markets study of 2012 global sales 17

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PERFORMANCE

Integrity AT OUR CORE Since our inception in 1959, we’ve insisted on integrity as a cornerstone of the Amway™ business model and for those with whom we enjoy partnerships and associations. More than 50 years later, our promise to maintain the highest ethical standards remains unwavering -no matter the country, the customs or the culture. Amway values its employees equally, and offers a stimulating work environment that creates opportunities for everyone to realize their full potential – to add value and to be valued.

UNITED STATES DIRECT SELLING ASSOCIATION (DSA) CODE OF ETHICS In the United States, the DSA’s commitment to ethical business practices and consumer service is its Code of Ethics. As a member company, Amway pledges to abide by the Code’s standards and procedures, which speak both to customers and sellers and ensure that member companies will make no statements or promises that might mislead either customers or prospective salespeople.

Doing OUR BEST As dedicated members of our communities around the world, we’re always exploring new ways to serve as stewards of our Earth. It means setting the bar high, and then raising it when we’ve reached a goal. From product and process

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enhancements to charitable and humanitarian efforts, it’s what we do in the constant pursuit of integrating sustainability goals into our corporate social responsibility.

Amway maintains a safe, clean and friendly workplace for all employees. We do not tolerate harassment, intimidation, prejudice, violence or drugs in the workplace. We cherish diversity and believe that all people should be respected and treated fairly regardless of personal characteristics such as their sex, race, ethnicity, disability, age or religion. At Amway, every employee is a respected and valued member of the team.

WORLD FEDERATION OF DIRECT SELLING ASSOCIATION (WFDSA) WORLD CODE OF ETHICS The WFDSA is comprised of 60 national direct selling associations and one regional federation. Amway leaders around the world hold more than 50 leadership positions in direct selling associations. Membership in the WFDSA requires a commitment to abide by its World Code of Ethics, established to protect consumers globally. Amway fervently promotes and abides by this World Code. Globally, the World Code of Ethics is a constantly evolving, enforceable standard of behavior. The cornerstone of the direct selling industry’s commitment to ethical business practices and customer service, the World Code is a mechanism that ensures independent salespeople and customers are treated with fairness and respect.

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A Responsibility to ENERGY SUSTAINABILITY At Amway, we’re proud to apply our core research and product design expertise to help solve global challenges. And we’re honored to join with others in fighting for cleaner air and water through innovative technology that make it easier to keep families and homes, happier and healthier. We’re committed to doing all of this ethically and efficiently, in a way that benefits future generations of our planet. Amway’s legacy of ethical business operations and environmental responsibility goes back to 1959, with the introduction of one of our very first products – L.O.C. (Liquid Organic Cleaner). As the company grew, we pledged to become increasingly creative, looking for new and

improved ways to operate more efficiently. Today, this philosophy continues to make sense for our business, for the business of Distributors today and tomorrow, and for the environment that we so dearly treasure. Five years ago, Amway established four key metric areas to improve efficiency of operations and reduce our environmental footprint. Those efforts seek to maximize recycling and decrease the generation of waste; increase our use of alternative energy, reduce our use of water; and decrease our overall greenhouse gas emissions. Not only has Amway met or exceeded many of our goals in place for 2014, but we’re on target to meet ambitious expectations already planned for the year 2020.

2011

2012

2013

2014 (Goal)

Waste Recycling Rate (%)

84.5%

87%

90.8%

95%

Alternative Energy Usage (Non-Grid)

5.2%

7.3%

14.5%

15%

Water Usage (KLiters)

1,602,984

1,404,529

1,335,7099* 10% Reduction

GHG Emissions (Tonnes)

154,747

139,496

124,225*

25% Reduction

*4th quarter estimated

SOME HIGHLIGHTS: Amway reduced its water consumption by more than 10 percent in 2013. Meeting this goal required us to implement new strategies like re-engineering the purified water system in the Liquids plant to incorporate UV as a microbiological control system, replacing the continuous heating and cooling loop that formerly serviced the system. Two years ago, Amway doubled the amount of non-grid wind power to which we had committed purchasing in 2009 for our World Headquarters in Ada, Michigan. Doing so puts us on schedule to meet or exceed our goal of 15 percent renewable power by 2015. In India, we’re planning to debut a plant in 2015 that will host the manufacture of nutritional and personal care products. The building is designed to meet stringent specifications set by the Leadership in Energy and Environmental Design (LEED) rating system, and will boast hi-tech advances in the areas of water, air, recycling and waste management. 21

Every year, in every way, we’re doing more to take the pulse of our products, by analyzing their lifecycle. In doing so, Amway scientists can better comprehend and affect a product’s design, use, and impact on the environment. Amway has developed what’s known as Life Cycle Assessment (LCA) tools to evaluate the effects of our products and packaging. To date, we’ve evaluated the lifecycles of more than 43 Amway™ products.

ENTERPRISE PERFORMANCE AND GOALS

%

From Cradle To Grave – ANALZYING THE LIFE OF OUR PRODUCTS

Using highly sophisticated software, Amway personnel work with formulators, packaging engineers, process engineers and others to explore various scenarios that can lessen our products’ effects on the environment. Armed with technological data gleaned from studying all the ingredients and processes that go into manufacturing a product, we can make more informed decisions regarding raw materials to manufacturing to distribution to end-of-life management. “It takes a big investment in the software, and resources to run it,” says Mark Gammage, a manager in Amway’s Analytical Sciences division. “But when we say we’re doing a better job on behalf of the environment, we want to be able to back it up. “If we claim our product can do something, we always substantiate that with evidence. And we do that with our LCA technology.”

Dr. Roy Kuennen Director Product Development-Water 22

Sustainable Forestry Initiative – The Amway Corrugated Printing Department is certified for fiber sourcing by the Sustainable Forestry Initiative. This means that 100 percent of Amway’s corrugated material is sourced from well-managed forests.

Leadership In GLOBAL SUSTAINABILITY Amway is proud to take a global leadership role when it comes to environmental sustainability.

It goes hand-in-hand with our objective to become good stewards of the earth that we all depend on for sustenance. And it reinforces our mission to enable people to pursue their potential – not only as business owners and employees, but as leaders in the field of environmental sustainability.

EPA Climate Leaders Partnership – Amway is committed to reducing our impact on the global environment by voluntarily completing a corporate-wide inventory of our greenhouse gas emissions for the United States Environmental Protection Agency. EPA Green Power Partnership – Amway helps support the development of new renewable power generation capacity nationwide, while also helping protect the environment through a collaboration with the U.S. EPA. Michigan Great Printers Project – We work to prevent pollution by achieving environmental compliance in association with our print services to continually manage our paper and ink usage. Michigan Business Pollution Prevention Partnership – We commit to improving the environment globally, as well as our immediate local ecosystems by adopting the three “Rs” – reduce, reuse, recycle.

PROTECTING OUR WILDLIFE AND THEIR HABITATS At Amway Headquarters, you’ll find that nearly 180 of our 430 acres along the coursing Grand River are managed as wildlife habitats. In protecting this land, we help ensure the success of often fragile wetland ecosystems that includes many species of plants, animals, and insects. At the same time, we’re preserving a thriving natural environment that can be enjoyed by our employees and a larger community of people who appreciate conservation efforts for generations to come. Each year, wildlife experts – along with Amway employees and their families – volunteer to identify, categorize and build nest boxes for the 80 species of birds, 155 insect types and 12 kinds of amphibians who call our Amway backyard their home.

AN ABIDING RESPECT FOR THE LAND What sets the Nutrilite® brand apart from all others isn’t just our high quality products. We can also point to the fact that we are the only global vitamin and mineral brand to grow, harvest and process plants on their own certified organic farms.* We do so on more than 6,400 acres of Amway-owned organic farmland throughout the United States, Mexico and Brazil, where plants are grown and harvested in accordance with nature, using sustainable methods. What this means is that we grow the natural ingredients used in our products without resorting to chemical fertilizers or synthetic pesticides. We replenish the soil, rather than deplete it, dehydrating and processing products within hours of harvest, and then carefully packaging and shipping them soon after production. *Source: Euromonitor International Limited, www.euromonitor.com/amway-claims.

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Wildlife Habitat Council – We are enhancing and restoring wildlife habitats by implementing sustainable planning practices. The continued success of Michigan native species is the primary factor in the health and wellness of our ecosystems. ISO Certifications – Our manufacturing sites in Ada and in Guangzhou, China, are certified to the International Organization for Standardization (ISO) 14001:2004 standard for environmental management. Our Buena Park, California facility is certified to the ISO 14001 standard. These certifications mean that our facilities demonstrate an environmental management system that reduces overall impacts like air emissions, hazardous waste generation, waste water and storm water discharges.

OHSAS Certifications – Our facilities in Ada and Guangzhou, China were certified to the Occupational Health and Safety Standards (OHSAS) 18001 for occupational health and safety. This standard demonstrates our commitment to providing safe and healthy work environments for our employees. Certificates and Awards in Hand – We have received awards for Environmental Excellence at Amway Hong Kong; Certificate of Clean Industry for Global Agribusiness Operations in Mexico; Clean Production Award for Amway China; and EPA Green Power Partnership bestowed by the U.S. EPA. •M ember of the American Cleaning Institute’s “Charter for Sustainable Cleaning. http://www.cleaninginstitute.org/ sustainability2013/ •M ember of the A.S.I.E. (Europe) “Charter for Sustainable Cleaning”. http://www.aise.eu/our-activities/sustainablecleaning-78.aspx Both “Charters” are voluntary approaches intended to promote and demonstrate a company’s effort to continually improve its sustainability profile. •R eport global greenhouse gas emissions through the Carbon Disclosure Project, the only global reporting system for greenhouse gas emissions. https://www.cdp.net/en-US/Pages/ HomePage.aspx •U S EPA Design for the Environment (DFE)Program Currently over 40 Amway Homecare formulations are certified by the DFE program. http://www.epa.gov/dfe/ •M ember of the Wildlife Habitat Council and the Amway World Headquarters is certified through the Wildlife at Work program. http://www.wildlifehc.org/programs/ wildlife-at-work/ •M ember of the West Michigan Sustainable Business Forum. As a leading member of the Forum, Amway sponsors yearly meetings at the World Headquarter in Ada. http://wmsbf.org/ •M ember of the US EPA Green Power Partnership since 2007. http://www.epa.gov/greenpower/ •A mway’s paper products in North America are certified through the Forest Stewardship Council (FSC) https://us.fsc.org/

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Surrounding You With – COMFORT & CARE With Amway’s Legacy of Clean® line of specially formulated products, you can rest assured that everything you use is derived from natural ingredients, and that nothing contains ammonia, chlorine or other harsh chemicals. Instead, we often rely on ingredients derived from coconut oil, orange oil and aloe vera.

We wanted a third-party certification to demonstrate our ongoing desire to subject our products to the most rigorous review possible, and prove their performance and safety. The DfE label means that EPA scientists have evaluated every one of the ingredients we use against a stringent set of health and environmental criteria.

It’s just one more way we surround you with both comfort and care, so that you can clean in powerful ways that are also gentle on the planet – right down to the tiles in your kitchen and the fibers of your carpeting.

A product is only allowed to carry the DfE label if each ingredient is among the safest in its ingredient class.

With a renewed focus on the Amway safe and green heritage which dates back to 1959, we’ve revitalized our entire home care product line. And to validate our work, we sought and earned third-party certification from the U.S. Environmental Protection Agency’s (EPA) Design for the Environment (DfE) program. More than 35 Legacy of Clean products now carry the DfE seal of approval, and we’re expanding that distinction globally.

‘LEED’-ING THE WAY WITH GREEN BUILDING Building construction waste accounts for 65 percent of all municipal solid waste in U.S. landfills alone, and are the reason for 70 percent of the nation’s electric use, 25 percent of our timber harvest, and 40 percent of materials consumed. No wonder, then, that Amway is constantly seeking ways to build and renovate its buildings – not only in the U.S., but all around the world -so that they’re environmentally sustainable. Perhaps the most stunning derivative is that 67 percent of all waste management is now diverted from landfills, a dramatic reversal of past practices that reflects Amway’s desire to decrease its environmental footprint. Additionally, the building was fitted with LED task lights in office cubicles, helping create a 26.1 percent lower lighting density. All appliances now boast a 92 % Energy Star rating. Nearly a third of the wood building products originated from within a 500-mile radius, and 100 percent of those products were harvested from FSC certified forests. In a span of two years, electric use dropped 20 percent. Steam consumption over the same period was reduced by 46 percent. Annual savings on utilities based on a sixmonth period December through May 2011 was nearly $153,000. The building was also retrofitted with showers, changing rooms, and a bike rack to encourage healthier commutes. We’re proud to showcase our Research and Design building at our World Headquarters in Ada, Michigan, which recently earned the U.S. Green Building Council’s “Leadership in Energy & Environmental Design (LEED) designation.

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GLOBAL RECOGNITION AUSTRALIA & NZ Lifetime Partner Award - Westmead Childrens Hospital Certificate of Appreciation Australia and New Zealand Achievers – Seek Phuket NGO Certificate of Appreciation – Disabled Surfers Association

CANADA Industry Innovation Award - Direct Sellers Association of Canada

CHINA China Charity Award by Ministry of Civil Affairs of the People’s Republic of China Included in the Forbes list of top 25 charity foundations in China 2013 Ranked 4th in transparency, by Ministry of Civil Affairs of the People’s Republic of China

HONG KONG Caring Company Award – Hong Kong Council of Social Service Gold Award for Volunteer Service – Government of Hong Kong Special Administrative Region Green Management award Bronze – Hong Kong Green Council

INDIA The Global CSR Excellence & Leadership Award from World CSR Congress for its work in education

ITALY Libro d’Oro Della Responsabilità Sociale d’Impresa

MEXICO Socially Responsible Company Award - Mexican Center for Philanthropy

PHILIPPINES Plaque of Recognition – Cebu City Federation in Partnership with the Department of Education Cebu City Certificate of Recognition – Department of Education Philippines

SOUTH KOREA

UKRAINE

Award from the Mayor of Seoul - AKL Headquarters

Ranked among the top 50 most socially responsible companies by GVARDIA

Award from the Mayor of Seoul - Jamsil Amway Plaza

GLOBAL AWARDS

Achievement Certificate - Korean association of Social Welfare Centers AKL Headquarters

TAIWAN The Long-term Sponsorship Award category - the Sports Administration, Ministry of Education of the Executive Yuan The Gold Award in the Sports Mentor Award of Sponsorship category - the Sports Administration, Ministry of Education of the Executive Yuan

Top 10 Best CSR Films of the Year, Amway One by One Campaign for Children – Boston College Center for Corporate Citizenship CSR Hall of Fame Award, Amway One by One Campaign for Children – PR News Gold “Stevie” Award, Best CSR Program, Amway One by One Campaign for Children – International Business Awards

THAILAND American Chamber of Commerce in Thailand Corporate Social Responsibility Excellence Recognition

Certificate of Appreciation – Department of Education Philipines

SINGAPORE Gold Award for fundraising efforts for the Singapore Children’s Society

HUNGARY Certificate of Appreciation – SOTE Childrens Hospital

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*2014 Amway Corporation Printed on 100% recycled paper